ALERT: Serious Problems Emerging As Desperate Gold Shorts (Bullion Banks) Double Margins

http://kingworldnews.com/serious-problems-emerging-as-desperate-short-bullion-banks-just-doubled-gold-margins/

Bullion banks “selling gold they don’t possess”. Squeeze alert!

http://www.mineweb.com/mineweb/content/en/mineweb-gold-analysis?oid=208598&sn=Detail

Proof Bullion Banks Are Buying All The Physical Gold They Can

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/9_Proof_Bullion_Banks_Are_Buying_All_The_Physical_Gold_They_Can.html

Incredibly Important Developments In Gold & Silver Markets

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/3_Incredibly_Important_Developments_In_Gold_%26_Silver_Markets.html

Keiser Report: No jail for banksters in real world Monopoly

Watch the last 13 minutes of this 26-minute video to get a better feel for gold backwardation, negative GOFO rates, fractional gold reserve banking, a commercial default, and difference between paper gold and physical bullion.


http://www.youtube.com/watch?v=j615aokEA_Y

Gold Shortage Creating Massive Problems For Bullion Banks

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/26_Gold_Shortage_Creating_Massive_Problems_For_Bullion_Banks.html

Gold Carry Trade : What is it?

http://www.rapidtrends.com/gold-carry-trade-what-is-it/

Gold and Silver Disaggregated COT Report (DCOT) for April 5

The takeaway message of this Commitments of Traders report is the speculators are short silver and the bullion banks (the smartest guys in the room) are way less short gold than they normally are.  In other words, the dumb money believes precious metals prices will continue to fall, while the smart money believes a bottom is in place.

http://www.gotgoldreport.com/2013/04/gold-and-silver-disaggregated-cot-report-dcot-for-april-5.html

IMF study in 1999 found 80 central banks lending 15% of official gold reserves

http://www.gata.org/node/12009

LBMA Market-Making Members

The term "bullion banks" is often used by hard money enthusiasts.  Here is a list of them:

http://www.lbma.org.uk/pages/index.cfm?page_id=62&title=market-making_members

London Trader - China Bought Massive Amount of Gold Today

The bullion banks are manipulating down the price of gold with their paper trading schemes, but this only aids buyers in Asia, as they buy the physical bullion at lower prices.  By scalping short-term profits, the bullion banks are just accelerating the depletion of physical inventory, auguring in an upside explosion in price later on.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/10/21_London_Trader_-_China_Bought_Massive_Amount_of_Gold_Today.html

“The price discount in gold is the most welcome thing to the entire Eastern Hemisphere.  The Chinese are buying very relentlessly because they know what is going to happen.  We had a major, major physical buy order today.  The Chinese bought a massive amount of physical today at the lows.”

“They (the Asians) are aware of how tight physical supply is and they buy in London towards the fix because they know there is an 80% chance the commercials will take it down and they will get a better price.  The Asians sit there and say, ‘Bring it on because we’ve got some orders to fill.’  They just want out of their dollars.

Unbelievably this is part of a continued transfer of wealth from the West to the East.  While our central planners try to figure out how to keep the broken system functioning, the cost to the West is we keep emptying our vaults of gold and shipping it to the vaults in the East.

Seems Like Mexico Purchased 110 Tons Of Gold That Don't Exist

I've blogged about Mexico's phantom gold purchase before.  The rush for physical delivery of precious metals will intensify going forward.

http://seekingalpha.com/article/296124-seems-like-mexico-purchased-110-tons-of-gold-that-don-t-exist

Exclusive post: gold market is changing as bullion banks are losing control

For years, gold traders could short the yellow metal during London and New York trading hours, and then go long the "barbaric relic" during Asian overnight trading hours--and come away with a nice profit for a day's work.  The logic was the anti-gold cartel at the LBMA and COMEX would surreptitiously suppress gold prices, usually using events like unemployment or housing data to time their bear raids.  However, Asians would bid gold prices up when their markets opened, as demand for physical gold was more than happy to buy the shiny metal at discounted prices.  There have been numerous studies to support this theory, some using statistics to prove these average daily pricing movements were anything but arbitrary.

Whether one believes in the anti-gold conspiracy or not, charting the price movements would have at least raised an eyebrow or two even for the most skeptical among us.  Given the lawsuits against JPMorgan Chase and HSBC for manipulating silver prices, the precious metals conspiracy theories are starting to gain traction.

That aside, I've started to notice a shift in the daily price movements in gold.  Sure, the price takedowns in New York trading still occur with far too much regularity, but lately the volatile price movements during COMEX trading are just as likely to be soaring during trading sessions.  This tells me the perma-short anti-gold bullion banks are starting to lose control.  In fact, according to Commitment of Traders (COT) data, these too-big-to-fail bullion banks have lightened up on their naked short positions, possibly due to ongoing investigations into the murky world of futures exchanges.

Between London, New York, and Asian trading of gold, $100 daily price movements are no longer rare.  Buyers of gold and silver in Asia have been bullish on these monetary metals for years.  What will break the grip of the anti-gold central banking and commercial banking cartel will be the flight to safety trade by institutional and sovereign wealth funds.  In fact, after years of central banks dumping gold into markets in order to suppress prices, 2009 was a turning point as central bankers became net buyers of gold, not net sellers.  That flow was reinforced in 2010 and is accelerating this year.

The take away message is even central banks of developed and emerging markets distrust Federal Reserve Notes (i.e. the USDollars) and are fleeing to the safety haven of gold.  Government leaders in Russia, China, Brazil, and other emerging countries are openly declaring their distrust of the Fed and US Treasury's printing press.  What used to be labelled conspiracy theory is now playing out in the trading pits of global exchanges.  Gold prices aren't necessarily rising:  paper currencies are collapsing.

Not easy for bullion banks to put golden Humpty Dumpty back together again

This is exactly the tone of a letter I sent earlier today to friends and family.  This is only the beginning of the scramble for physical gold.

http://www.usagold.com/cpmforum/2011/08/20/not-easy-for-bullion-banks-to-put-golden-humpty-dumpty-back-together-again/

Adrian Douglas: Bullion bank trading -- a closely guarded secret

http://www.gata.org/node/9784

The Anti-Thesis of the New World Order

http://www.larsschall.com/2011/03/29/the-anti-thesis-of-the-new-world-order-%E2%80%93-die-anti-these-der-neuen-weltordnung/

Conclusions: The price rise of silver in Q4/2010 would have been much steeper had J.P. Morgue and HSBC not “shellacked” the market with an additional, cumulative 4 billion in price-suppressive, paper short sales. Had these agents of the U.S. Federal Reserve not undertaken this market manipulation – the price of silver would have soared much higher, making the already weak U.S. Dollar look even more unattractive as a prudent vehicle for countries seeking diversification/safety of their reserve positions.

The CFTC is “owned” by the banks they are supposed to regulate. Instead of ensuring the sanctity of our capital markets, enforcing meaningful position limits, they aid-and-abet the banks in their price rigging [undoubtedly in the name of fiat preservation / National Security].

What is really occurring in precious metals-ville is that DEMAND for physical metal is now increasingly trumping the fraudulent, unlimited supply of paper metal [futures]. This is why “BEAT-DOWNS” in price – like the buck and half swoon depicted below [circled] on March 11, 2011 – no longer cause MASSIVE, LASTING breakdowns. A couple of years ago an engineered sell-off like the one depicted below would have decimated the silver market for months.

The real reason for the growing resilience in the metals markets is this: despite shills claiming that physical supply is no problem – institutional investors and national mints are having increasing difficulty sourcing physical metal.

In the past – smack downs in the price made investors wary and blunted demand. Today, investors are better informed and realize that smack downs in price when physical supplies are tight – are not only counter-intuitive, they’re a sign of desperation – and this brings buyers of physical metal “out of the woodwork”. - Rob Kirby

Bullion Banks Get Smaller in COMEX Silver Futures

http://www.gotgoldreport.com/2011/02/bullion-banks-get-smaller-in-comex-silver-futures.html#tp

CFTC raises alarm about silver market

Where are all my detractors now? I've been harping on illegal price suppression schemes by the large bullion banks for years, to an audience who generally dismissed me as a conspiracy theorist. This may cause the price of silver to soar even more now that the commercial shorts have to cover their shorts--and their tracks. I'm going to guess they'll get a slap on the wrist (i.e. a fine with no admission of guilt) since they're doing it on behalf of the Fed--even if the CFTC enforces its position limits.

Either way, manipulation only works--until it stops working. The horses have left the barn. Silver, bitchez!

http://www.reuters.com/article/idUSWALQLE6QE20101026?loomia_ow=t0:s0:a49:g43:r1:c0.353211:b38714236:z0

Concentration of short positions at the COMEX

Click on chart to enlarge.

The concentration of short positions in COMEX gold and silver among a few bullion banks suggests price suppression and manipulation.

Gold market manipulation unraveling

https://marketforceanalysis.com/articles/latest_article_310710%20.html

But unallocated gold is not gold at all. It is not gold that has been deposited that is loaned to someone else. It is gold that has been deposited that is loaned simultaneously to many other people. I have estimated that for each ounce in the vault the bullion banks have loaned or sold 45 ounces. So this appears to confirm my thesis that the BIS has been credited 346 tonnes of ledger entry gold in the BIS unallocated gold accounts held with the bullion banks. This makes the BIS an “unsecured creditor” of the bullion banks as defined by the London Bullion Market Association (LBMA) in their description of “unallocated account” holders.

The FT story suggests at least 10 bullion banks needed physical gold bullion desperately. This looks like a rerun of the 1960’s London Gold Pool fiasco where central banks dishoarded gold to meet massive investor demand in a futile attempt to maintain a gold price of $35/oz.

I have spelled out in recent articles that there is a run on the bullion banks that has commenced and is gaining momentum. Investors and institutions are waking up to the fact that “unallocated gold” is not gold at all but just an unsecured promise for gold. They are now starting to demand delivery and as there is only one ounce backing each 45 ounces that are claimed the situation is turning into what will be a short squeeze of epic proportions.

So investors have bought a record amount of “physical gold” which is actually paper gold which they have never seen and only about 2.3% of what has been sold actually exists. The bullion banks are “awash” with liabilities for the record amount of gold they are supposed to be holding. Investors are now distrusting the bullion banks and are asking for delivery so is it too surprising that the record amount of “physical gold” sales has led to a record gold swap being transacted to give the bullion banks liquidity?

The IMF has been surreptitiously selling gold at a clip of around 15 tonnes per month every month since February without any official announcements and without disclosing the recipients. This is another sign that the bullion banks are in serious trouble.

When 45 ounces of gold are sold but only one real ounce is sourced the result is a massive suppression of the gold price. But the converse is also true; when 45 ounces of gold are demanded for only one that is in the vault the price explosion is beyond imagination.

What is becoming unraveled is not the mystery of the BIS gold swaps as claimed by the FT but the gold price manipulation scheme itself.